UN shipping agency strikes deal on fuel emissions, CO2 fees

Countries at the U.N. shipping agency struck a deal on Friday on a global fuel emissions standard for the maritime sector that will impose an emissions fee on ships that breach it and reward vessels burning cleaner fuels, as per Hydrocarbonprocessing.

The U.S. pulled out of the climate talks at the International Maritime Organization (IMO) in London this week, urging other countries to do the same and threatening to impose "reciprocal measures" against any fees charged on U.S. ships.

Despite that, a majority of countries approved the CO2-cutting measures to help meet the IMO's target to cut net emissions from international shipping by 20% by 2030 and eliminate them by 2050.

Under the scheme, from 2028 ships will be charged a penalty of $380 per tonne (t) on every extra ton of CO2 equivalent they emit above a fixed emissions threshold, plus a penalty of $100/t on emissions above a stricter emissions limit.

Countries still need to give final approval at an IMO meeting in October. The talks exposed rifts between governments over how fast to push the maritime sector to cut its environmental impact.

A proposal for a stronger carbon levy on all shipping emissions, backed by climate-vulnerable Pacific countries—which abstained in Friday's vote—plus the European Union and Britain, was dropped after opposition from several countries, including China, Brazil and Saudi Arabia, delegates said.

The deal is expected to generate up to $40 B in fees from 2030, some of which will go towards making expensive zero-emissions fuels more affordable.

In 2030, the main emissions limit will require ships to cut the emissions intensity of their fuel by 8% compared with a 2008 baseline, while the stricter standard will demand a 21% reduction.

By 2035, the main standard will cut fuel emissions by 30%, versus 43% for the stricter standard.

Ships that reduce emissions to below the stricter limit will be rewarded with credits that they can sell to non-compliant vessels.

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The Trump administration imposed sanctions on Iranian oil trading networks on Thursday, including on a China-based crude oil storage terminal linked via a pipeline to an independent refinery, just days before talks between the U.S. and Iran, as per Hydrocarbonprocessing.

The sanctions came after Secretary of State Marco Rubio said the U.S. will hold direct talks with Iran on Saturday in Oman. President Donald Trump said on Monday that Iran would be in "great danger" if the talks were unsuccessful.

The U.S. imposed sanctions on Guangsha Zhoushan Energy Group Co. Ltd., which operates a crude oil and petroleum products terminal on Huangzeshan Island in Zhoushan that knowingly engaged with oil from Iran and is connected through the Huangzeshan–Yushan Under Sea Oil Pipeline to an independent refinery, the U.S. State Department said.

"This terminal is directly connected to a major refinery complex in China, demonstrating the role that China-based refiners continue to play in the purchase, acquisition and processing of Iranian crude oil," the State Department said, without naming the refinery.

However, tanker tracking firms Vortexaand Kpler and trade sources told media that the refinery has refrained from buying Iranian oil.

The State Department said the terminal had acquired Iranian crude at least nine times between 2021 and 2025, including from U.S. sanctioned vessels, and has imported at least 13 MMbbl of Iranian crude oil.

The terminal, in the eastern province of Zhejiang, is not a major player in Iranian oil, which lands mostly in independent refining hub Shandong province to the north. China buys roughly 90% of Iran's exported oil, with imports averaging about 40 MMbbl per month, according to traders and analysts.

Calls and an email to Guangsha Zhoushan Energy went unanswered. China's Iranian oil imports surged in March as buyers and dealers stocked up, anticipating more U.S. measures would tighten supplies further.

"The United States remains focused on disrupting all elements of Iran’s oil exports, particularly those who seek to profit from this trade," U.S. Treasury Secretary Scott Bessent said.

China and Iran have built a trading system that uses mostly Chinese yuan and a network of middlemen, avoiding the dollar and exposure to U.S. regulators.

The Chinese embassy in Washington did not immediately respond to a request for comment. But in response to a sanction on a teapot refinery last month, a spokesperson said: "China has always been firmly opposed to illegal and unjustifiable unilateral sanctions and so-called long-arm jurisdiction by the U.S."

It was Washington's latest round of sanctions on Iran since Trump said in February he was re-imposing a "maximum pressure" campaign including efforts to drive down the country's oil exports to zero to prevent it from getting a nuclear weapon.

Iran says its nuclear program is for civilian purposes.

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thyssenkrupp Uhde announced the signing of a 5-year framework service agreement with Brunei Fertilizer Industries Sdn Bhd (BFI), as per Hydrocarbonprocessing.

This agreement signifies a key milestone in the ongoing collaboration between the two companies, aimed at advancing digitalization and implementing clean technologies in the fertilizer industry. Central to these efforts is the set-up and implementation of a digital twin, which will provide a virtual representation of the plant to enable real-time monitoring, predictive maintenance, and datadriven decision-making. This technology, together with specialized trainings, will allow BFI to enhance operational safety, reduce downtime, and achieve greater energy efficiency.

In addition to that, Uhde will evaluate opportunities to reduce the carbon footprint of a potential second BFI fertilizer complex, ensuring that operations meet the highest environmental standards. This includes evaluating the feasibility of expanding into sustainable ammonia production such as incorporating blue ammonia by adding carbon capture technologies, and green ammonia derived from renewable energy sources.

Brunei Fertilizer Industries: “This agreement is a testament to the excellent cooperation between BFI and thyssenkrupp Uhde. Together, we are committed to driving innovation and sustainability in the fertilizer industry. The development of a digital twin and the exploration of low-emission ammonia projects are key steps towards achieving our environmental objectives.” BFI’s CEO, Dr. Harri Kiiski adds: “Reducing our environmental impact is at the core of our efforts, particularly in improving the carbon footprint of our products. We are identifying strategies to cut emissions during production and transportation. With one of the most advanced plants globally, we inherently operate at a lower carbon footprint than older facilities, which typically average 50 years in operation.“

Nadja Hakansson, CEO of thyssenkrupp Uhde, commented: “We are proud to support BFI in its ambitious journey towards innovation and sustainability. By leveraging our technology and implementation expertise, we create lasting value for our customer and set new standards in operational excellence.”

The BFI plant was built by thyssenkrupp Uhde as a fully integrated, state-of-the-art fertilizer complex which comprises an ammonia plant with a daily capacity of 2,200 metric tons as well as a urea plant and a urea granulation plant, both with a capacity of 3,900 tons per day. After its completion, the plant enabled Brunei to produce high-quality nitrogen fertilizer mainly for the export market. Nitrogen is an essential nutrient for plant growth and therefore a key agricultural input.

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Taiwan's Formosa Petrochemical Corp. is operating its refinery at 68% capacity this month, or about 370,000 bpd, down from 70% in March due to planned maintenance on one of its refining units, as per Hydrocarbonprocessing.

Asian export powerhouse Formosa operates a 540,000-bpd refining complex in Mailiao. The company began an 84-day maintenance program on its residue fluid catalytic cracking unit (RFCC) on March 3, Lin said.

"We plan to keep operating rate lower at around the same level next month as well due to maintenance," he said. Formosa is currently running two of its three naphtha crackers at a combined rate of 60%, while its No. 2 cracker has remained offline for more than a year due to weak demand, Lin said.

To supplement feedstock needs, the company purchased liquefied petroleum gas (LPG) cargoes for the second half of May, according to trade sources. Formosa's flexi-feed crackers can substitute up to 30% of naphtha with LPG, depending on price spreads.

"We have bought the cargoes as we plan to switch to LPG feed in May, but we will not increase operating rates as demand is lower," Lin said.

We remind, Formosa Plastics Corporation (FPC), a major global petrochemical producer, plans to restart its Ningbo propane dehydrogenation (PDH) plant in mid-April following a scheduled maintenance. The plant was shut down for maintenance on March 20, 2025. Located in Ningbo, Zhejiang Province in China, the plant has a production capacity of 600,000 tons of propylene per year.

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Despite the announced pause in U.S. tariffs, recent market volatility and ongoing uncertainty are going to have a dramatic impact on global refined product demand, said hydrocarbonprocessing.

Citing extreme volatility and uncertainty about U.S. trade policy, including whether or not the 90-day tariff pause announced on April 9 proves temporary, the new Global Crude Oil Markets report says that refined product demand growth for the rest of 2025 could be cut by up to a third and that an absolute decline cannot be ruled out if more severe tariff scenarios come to fruition.

“Extreme unpredictability will inhibit overall investment and consumption in the United States and elsewhere. Until clarity and confidence return about what the new rules of trade are, investors and consumers will remain in limbo,” said Jim Burkhard, Vice President and Head of Research for Oil Markets, Energy and Mobility, S&P Global Commodity Insights.

From April 1 to April 9, Dated Brent, the most important energy price in the world, fell by $15. Yet, it is the context of the current situation—more than the recent price movements themselves—that is the most consequential, the analysis says.

Such dramatic price movements are not particularly rare—even in times of relative normalcy, the report notes. Prices fell by about $12/bbl over seven trading days in August–September 2024. Earlier, in April–June 2024, prices fell by about $11/bbl over 17 trading days and, more broadly, about $17/bbl over 37 trading days.

What makes the present situation stand apart is the extreme level of unpredictability, the report says.

“The sharp decline in crude oil prices in recent days, while not particularly extraordinary in historical terms, is unique because of the changing context it reflects—the extreme uncertainty that now pervades expectations of trade, economic well-being and relations between the world’s nations. There is a sense that near-term confrontations and conflicts could swiftly escalate, pitching the world into perilous situations,” said Bhushan Bahree, Executive Director, Global Oil, S&P Global Commodity Insights.

Meanwhile, steep tariffs remain in place on trade between the United States and China. How the US-China economic dispute plays out will be a key signpost for oil markets, the analysis says.

“What we are seeing in April 2025 is a reordering of global trading norms that emerged after World War 2. We know the old system is no longer, but it is not clear what is going to replace it. And we may not know for a while to come. The same may well be said for the postwar international security order,” said Burkhard.

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